Budget fashion and homeware retailer Matalan saw revenues and profits rise in its first quarter as it overcame the High Street's gloom.

The company, which has 227 stores in the UK, said both store and online sales rose - with the latter climbing 39 per cent and helping total revenues 5 per cent higher to £265.9million in the 13 weeks to May 26. Pre-tax profits rose 11 per cent to £24.8million.

Chief executive Jason Hargreaves, son of billionaire founder John, said the results were 'strong' but warned there was no improvement in sight for the troubled retail sector.

In fashion: Matalan said said both store and online sales rose in its first quarter

'Our first quarter represents a strong set of results', Hargreaves said.

But added he was cautious about the outlook amid the ongoing troubles faced by high street retailers, which have been hit by the pound's Brexit-induced slump driving up costs, higher business rates and labour costs as well as shift in consumer behaviour.